By James A. Loyola
Top mass housing developer 8990 Holdings Inc. reported that its net income almost doubled, rising 95.8 percent to a record P2.39 billion in the first half of 2018 from the P1.22 billion registered in the same period of last year.
In a statement, the firm said this was mainly driven by the triple digit growth seen in second quarter net income which hit P1.38 billion from just P469.20 million in the same period last year.
Strong revenue growth in the first half of the year supported bottomline growth performance. Revenues in the first six months of 2018 jumped 97.5 percent to p6.0 billion from P3.04 billion in the same period last year.
This is equivalent to 4,159 homes or almost double the 2,216 homes delivered in the first half of 2017.
Mass Housing contributed 59 percent of total revenue while Medium Rise Buildings (MRB) and High Rise Buildings (HRB) combined brought in 41 percent.
Top revenue generators in terms of value were NCR which brought in 32 percent of total revenues followed by Iloilo and Bacolod as new projects in the region generated 19% of the total.
“We are thrilled to report that we were able to exceed our internal targets. This makes me even more confident that we will hit our P11.5 billion revenue goal by the end of the year,” said 8990 President Willie J. Uy.
Unrealized sales by the end-of June 2018 was at P709 million which the Company expects to book in the second half of 2018.
Gross Profits grew 75.6 percent year-on-year to P3.1 billion. However, slightly higher costs of goods resulted in a narrower margin of 52.1 percent from 58.6 percent in the first half of 2017.
To drive the Company’s profitability, 8990 management focused on increasing cost efficiencies.
This pushed down operating expenses by 2.3 percent to P723.56 million from P740.86 million in the first half last year.
This helped net income margin hit 39.8 percent, higher than its 2018 target of 38.0 percent.